Question: Mokena Company uses the retail method to approximate the average cost of its ending inventory. During the current period, the company changes the selling price

Mokena Company uses the retail method to approximate the average cost of its ending inventory. During the current period, the company changes the selling price of its inventory from the date of acquisition to the end of the period. Which of the following will be included in the denominator of the calculation of the cost-to-retail percentage?

Net markups and net markdowns
Neither net markups nor net markdowns
Net markups, but not net markdowns
Net markdowns, but not net markups

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